S&P Global sees OpenAI as a "key credit risk" for Oracle and cuts its credit rating

S&P Global has downgraded Oracle's credit rating to "BBB-", just one notch above junk status. OpenAI constitutes about half of Oracle's $638 billion in contractual obligations. If OpenAI were to withdraw, Oracle would face significant challenges in utilizing its data center capacity. S&P Global views OpenAI as a "key credit risk" for Oracle, prompting this downgrade. Oracle's credit rating heavily relies on its partnership with OpenAI, which represents a substantial portion of its financial commitments. Any changes in this partnership could have severe repercussions for Oracle.